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The U.S. biofertilizers market size was USD 419.18 million in 2022. The market is projected to grow from USD 469.49 million in 2023 to USD 1,023.73 million by 2030, exhibiting a CAGR of 11.78% during the 2023-2030 period.
Biofertilizers refer to agricultural fertilizers containing microorganisms that help improve soil fertility and ensure plant growth. The U.S. is one of the largest consumers of the product and farmers rely heavily on using sustainable agricultural inputs to improve their crop yield. Products such as rhizobium biofertilizers are significantly popular in the country.
Logistics Disruption Significantly Hampered the Overall Market Growth
The market size suffered slightly during the COVID-19 pandemic. The pandemic impacted the global and the U.S. agri-inputs supply chain, causing a slowdown in the bio-fertilizer market growth. The farmers in the U.S. also suffered as there was a significant gap between the demand and supply of such products in the market. Some of the manufacturers increased the price of their products, causing further distress to the dwindling profit margin of farmers. Despite agricultural activities remaining operational during the pandemic, lockdown and transport disruptions hampered the manufacturer's ability to source the raw materials required for manufacturing and transporting the final goods to the farmers. Hence, farmers shifted from shop-based products to products such as manure, which are readily available in various farms.
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Increasing Investment in Product Innovation to Drive Demand among Farmers
Start-ups are investing significantly in developing innovative agricultural solutions for the growing U.S. market. Companies such as Kula Bio are developing proprietary technology that increases the microorganisms' shelf life and efficacy. Some companies, such as Earnest Earth, are developing bacterial strains which can tolerate changing environmental conditions. Furthermore, some companies are adopting advanced technology, such as machine learning to formulate new products. The combination of innovation with technology is expected to enable manufacturers to increase their product effectiveness in the upcoming years.
Increasing Number of Organic Farms to Augment the Growth of the U.S. Biofertilizers Market
Many conventional farms in states such as California, Vermont, New York, and Maine are transitioning toward organic farming. As per data provided by the U.S. Department of Agriculture (USDA), there are 17,445 certified organic farms in the U.S. In organic cultivation practices, biofertilizer is one of the major agricultural inputs used to improve productivity. Rhizobium, azotobacter, and other nitrogen based products are widely used for cultivating organic fruits and vegetables. The growth in organic farming is expected to boost the demand of biologicals in the country.
Government Funding and Support toward Sustainable Agricultural Practices to Promote Biofertilizers Industry Growth
As per data provided by the World Bank, the price of fertilizers increased by 30% in 2022 owing to the COVID-19 impact and the Russia Ukraine war. Such a hike in agriculture input cost significantly strained the operation of U.S. farmers growing corn and wheat specifically. Hence, to support the farmers in combating the hike in the price of fertilizer cost, the U.S. Department of Agriculture (USDA) announced its support for developing innovative and sustainable fertilizer by providing a grant of USD 250 million. Such programs help the producers to innovate and develop new products for the growing market in the U.S.
Moreover, to reduce the reliance on synthetic fertilizers, programs such as carbon credits are introduced to nudge the chemical fertilizer manufacturing companies toward manufacturing environmentally sustainable products. Farmers are also able to derive significant monetary profit from such programs. For instance, U.S.-based company Indigo Ag helps farmers to generate income through carbon credit markets.
Varying Effectiveness of Bacterial Strains under Different Climatic Conditions to Impede Market Growth
The effectiveness of these products varies significantly based on the soil and climatic conditions. Its efficacy decreases with an increase in temperature and changes in the pH levels of soil. Additionally, in extreme climatic conditions, a suitable carrier material is unavailable for bacterial strains growth, impacting their efficacy. As the climatic conditions are worsening in the U.S., there is an urgent need to address the bacteria efficacy and improve product quality. Such instances can hamper the U.S. biofertilizers market growth.
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Nitrogen Fixing Biofertilizers to Lead Owing to the Increased Demand for Agricultural Crops
Nitrogen-fixing products account for the highest share of biofertilizers in the U.S. market. The U.S. is one of the major global producers of corn, wheat, and soybeans, and the farmers invest significantly in products which help improve the yield of these crops. The use of nitrogen-fixing products helps in nitrogen fixation, iron sequestration, allowing plants to use such molecules for growth and development. With an increase in crop production, the demand for such products is expected to increase significantly.
As per a research published by the U.S. Department of Agriculture (USDA), limited presence of phosphorous in the soil can cause low yield and poor growth. Using phosphate solubilizing bacteria (PSB) helps improve the crops' phosphorous intake. Soybean, one of the major crops grown in the U.S., requires phosphorous for its growth which can help improve crop yield.
Rhizobium Holds Maximum Share Due to Increasing Demand for Nitrogen Fixing Biofertilizers
Rhizobia is one of the major microorganisms that can easily form a symbiotic relationship with plants, convert atmospheric nitrogen to ammonia, improve soil fertility, and rehabilitate arid lands. Legumes such as peas, chickpeas, and soybeans are able to benefit from such association and attain significant growth.
Azotobacter species is one of the major microorganisms found suitable for improving plant nitrogen nutrition and can be used for large-scale production of such products. It helps synthesize plant growth hormones and stimulate other rhizosphere microorganisms that promote plant growth and protect host plants. Using such azotobacter containing fertilizer also helps reduce reliance on urea and other chemical nitrogen-containing fertilizers. Other microorganism species such as Azospirillium, Pseudomonas, Bacillus and VAM are also used for manufacturing such fertilizers.
Seed Treatment to Dominate Due to Higher Bioavailability Compared to Other Applications
Seed treatment is the most widely adopted process among the different modes of application used for applying biofertilizers. Rhizobium and azotobacter can be easily applied on seeds effectively and economically and can be used on field crops, pulses, cereals grains, and other crops to enhance plant emergence and growth, improve nutrition intake, and crop and plant immunity.
Another way through which these products are applied to the crops is through soil treatment. Applying them to soil helps keep the soil together and consolidate the soil structure. This helps to reduce soil erosion, enable nutrient recycling and improve crop yield.
Cereals Account for Highest Market Share Owing to High Production
Among crop type, the cereals segment accounts for the highest share owing to the country's high production of corn and oats. According to data provided by the National Agricultural Statistics Service and the U.S. Department of Agriculture (USDA), the U.S. produced 13.9 billion bushels of corn and 4.38 billion bushels of soybean in 2022. Such increase in production, export, and consumption is expected to propel farmers to adopt biofertilizers to improve the yield.
The U.S. is also a major producer of oilseeds in the world and produces crops such as soybeans, cottonseed, and sunflower. Thus, the manufacturers have the opportunity to develop products that can improve the overall market share.
Key Players are Focusing on Research and Development to Develop New Products
Several major players and startups are competing against each other to expand their market presence in the country. Some of the major players are Lallemand Inc., Novozymes A/S, Kiwa Bio-Tech Products Group Corporation, and others. The U.S. market is the largest shareholder in the North America biofertilizers market and thus the increasing demand for sustainable agricultural solutions has created opportunities for the market players to focus on research and developing new products and launch innovative and crop-specific solutions for farmers. Some of the market players are also entering into strategic partnerships with related players to expand their production capabilities and improve their go-to-market strategy. . They are also providing free sample of biofertilizers to the farmers so that they can determine the efficacy of the products on the crops
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The report includes quantitative and qualitative insights into the market. It also offers a detailed analysis of the market size and growth rate for all possible segments. Various key insights presented in the report are an overview of related markets, competitive landscape, recent industry developments such as mergers & acquisitions, the regulatory scenario in the U.S., and key industry trends.
Value (USD Million)
CAGR of 11.78% from 2023 to 2030
By Crop Type
Fortune Business Insights says that the U.S. market size was valued at USD 419.18 million in 2022.
The market is projected to grow at a CAGR of 11.78% during the forecast period (2023-2030).
The nitrogen fixing segment is expected to be the leading type segment in the U.S. market.
Increasing organic farms and government support toward sustainable agricultural practices is expected to drive the market growth.
Lallemand Inc., Kiwa Bio-Tech Products Group Corporation, and BioWorks, Inc. are some of the top players in the U.S. market.
Varying effectiveness of bacterial strains under different climatic conditions is expected to impede the market growth.
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